Daihatsu Optimistic LCGCs Will Remain in Demand Despite Price Increases

KatadataOTO – Due to the 12 percent VAT, the OTR (On The Road) price of cars will increase starting January 2025. This includes Daihatsu's LCGC (Low Cost Green Car).

Based on KatadataOTO's findings, there is a price increase in the range of Rp 1 million to Rp 4 million for their LCGCs, namely the Ayla and Sigra.

Nevertheless, Daihatsu is confident that this vehicle segment will still be in demand by consumers. 

“If you ask what the LCGC market is like? Again, the market is very large,” said Sri Agung Handayani, Marketing Director and Corporate Communications of PT ADM (Astra Daihatsu Motor) when met in South Jakarta, Thursday (16/1).

Photo : Daihatsu

She revealed that the Sigra itself has been the market leader in its segment for four consecutive years. Throughout 2024, its retail sales reached 54,336 units, making it the largest contributor to Daihatsu's car sales.

Considering that 80 percent of Daihatsu consumers make purchases on credit and many of them are first-time car buyers, Agung said that her party provides a number of conveniences.

“That is through credit, especially with down payments, interest rate options, or longer tenors. So customers can discuss and customize based on their needs,” she affirmed.

Besides the 12 percent VAT, a number of regions will also implement a surcharge on PKB (Motor Vehicle Tax) and a surcharge on BBNKB (Vehicle Title Transfer Fee).

However, Daihatsu stated that many regions are providing relief or even postponing the policy. Thus, it is hoped that this can boost car sales, including LCGCs, especially at the beginning of this year.

“Actually, what is being fully implemented now is the VAT, the additional VAT from 11 percent to 12 percent. But regarding the surcharge, we are grateful that the provincial governments can finally understand the industry,” she said.

Photo : KatadataOTO

Out of 33 provinces, she mentioned that there are only five that will still impose the surcharge, namely North Sulawesi, West Nusa Tenggara, East Nusa Tenggara, Papua, and West Papua.

“I am sure the central and regional governments will review again what this three-month trial (of the surcharge relief) will be like,” she expressed.

For your information, LCGC prices in January 2025 will increase due to several factors. For one brand, the price even exceeds Rp 200 million.